"The prospective Area Franchise Developer is an individual with significant multi-unit restaurant franchise operations background and substantial financial strength," states Mr. Cheatham. "Upon successful completion of these negotiations, the Area Developer will own the franchise rights for Tennessee, Alabama, Georgia, North Carolina, South Carolina, and Florida. Assuming a successful completion of these negotiations, the Company will receive, at closing, $1,200,000 in franchise fees. The Area Developer will be obligated to sell, within the first 24 months of the agreement, 8 Territory Franchises consisting of 40 franchise restaurants. Upon satisfying this obligation, the Company will receive an additional $1,800,000 in franchise fees over the following 24 months. Once the restaurants are opened, the Company will receive approximately $800,000 each year in royalties."

Mr. Cheatham further states, "this Area Developer believes that over the first 10-years of his franchise he may sell approximately 60 Territory Franchises that would develop in excess of 300 franchise restaurants within his 6-State franchise. If this occurs, this growth would generate, for the Company, $13,500,000 in franchise fee revenue and $6,000,000 in annual royalties with an area-wide revenue base of approximately $150,000,000 each year."

Area Developers are franchisees that have the financial and operational capabilities to sell and service Territory Operators (the Company's primary franchise target) within an exclusive large geographic area. The Area Developer acquires an exclusive right for a pre-determined development fee that is based on the number of potential Territory Operators in their exclusive area. Area Developers sign an Area Development Agreement that includes, among many rights and obligations, a performance schedule. Area Developers risk losing their exclusivity in the event they do not meet their performance schedule.

Territory Operators acquire an exclusive geographic territory that can support a minimum of five (5) restaurants. The Territory Operator pays a fee for the exclusive geographic rights and is obligated to open and operate those five restaurants within a 2 1/2 year period following signing of the Territory Agreement. Each time a restaurant is opened, the Territory Operator is required to sign a Unit Franchise Agreement for that restaurant accompanied with a franchise fee. The Unit Franchise Agreement sets forth the operating obligations of the franchisee including the payment of royalties and the contribution to a national advertising fund.

About Ragin' Ribs

PDC's recent acquisition of Ragin' Ribs has placed the company at the beginning of a rapid growth cycle. A hot, new "Fast Casual" franchise, Ragin' Ribs, http://www.raginribs.com, is at the forefront of the fastest growing segment of the food industry, that being fast casual. Ragin' Ribs is an innovator in the exploding market of Home Delivery of quality meals. The Company's franchise system is professionally designed and meets all regulatory requirements. The franchise economic model targets for low investment cost and high returns. There is a strong management team in place with over 150-years experience in franchising and food service.

This press release contains forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not guarantees of future performance. Such statements are subject to risks and uncertainties and other factors as may be discussed from time to time in the Company's public filings with the U.S. Securities and Exchange Commission ("Commission"), press releases and verbal statements that may be made by our officers, directors or employees acting on our behalf which could cause actual results to differ materially from those discussed in the forward looking statements and from historical results of operations. In addition to statements, which explicitly describe such risks and uncertainties, statements with the terms "believes," "belief," "expects," "plans," "anticipates" and similar statements should be considered uncertain and forward-looking. Factors that might cause such a difference include, without limitation: the uncertainty of the Company's ability to meet capital needs; competition within the fast-casual restaurant segment; the closing of projected franchise sales; and as further set forth in our public filings filed with the Commission and our press releases.

SOURCE: P.D.C. Innovative Industries, Inc.